Micropayment channels are systems that allow for the efficient transfer of small amounts of money between parties without needing to record each transaction on the main blockchain. By opening a channel, two users can conduct multiple transactions privately and instantly.The process begins when the two parties lock up a certain amount of cryptocurrency in a multi-signature wallet. This amount serves as a balance for future transactions. Once the channel is set up, they can send funds back and forth almost endlessly, updating their balances off-chain.When the users are finished transacting, they can close the channel, with only the final balance being recorded on the blockchain. This drastically reduces fees and speeds up transactions, making it practical for very small amounts, often referred to as micropayments. By enabling efficient and low-cost transactions, micropayment channels open up new possibilities for applications like streaming services, online content, and tipping.